Stock Markets Exposed

I am thinking of investing in penny stocks.?

Seems like a good way to make a few bucks . My friends tell me not to. Is it true they are hard to cash in after you purchase them. I saw one yesterday that went up 3900 %. Any advice would be appreciated

Public Comments

1. They're not a good investment. Yes, once in a while they go up spectacularly, but the great majority of them go nowhere. It's like playing the lottery. Yes, you could win a million dollars, but considering the odds it's not a good deal. 8^<
2. its just as dangerous as gambling at las vegas
3. Not trying to sound mean but your question is typical of those who have never invested in penny stocks before. You are only looking at the upside. You have to remember those huge gains will be far and few between. You will have much bigger losses than gains investing in penny stocks. Most penny stocks are penny stocks for a reason because they are worthless.
4. There are bad penny stocks, and there are worse ones. The worse ones are usually those for which you receive "advises". Only the advisor makes money by selling when you buy them.
5. and then they are they poeple that havn't got a clue like the answers above! Penny stocks isnt gambling! You can make money with them! the results are not few & far between! If they had a clue they would know otherwise, if you do your research you can make a killing from them. A lot of penny stocks are in the $1- 5 range with massive volume to buy and sell at will and huge potential to double, triple your money very fast. It is a gamble to blindly place money on a penny stock with out doing any research however the answerers above should give you the bennifit of the doubt and not think of you as a complete idiot. Do your research and enjoy having the last laugh. I have been using http://goldenbullpicks.com check them out you will be impressed! and always remember to do your own research.
6. I agree with jasonsegon. Penny stock isn't bad at all. You have to figure it out if that stock has potential or not. I have been investing in a stock for months and finally it rocket up by 1000% and I made a fortune of it. The point is that you may want to diversify your money with several penny stocks and investigate them to see which is more potential to going upward. time will tell and be patience about it.Good luck. P.S I enjoy playing with IPOs. Which I have some suggestion in my blog: http://investment-blog.net/2007/08/21/these-future-bull-which-are-undervalued-and-its-worth-to-buy-and-hold-for-next-coming-six-monthssewcobjuniob/
7. GOOD LUCK!! As they say in Vegas. . . .
8. me being a mirco-cap investor say the opposite. you just got to look at them like any other stock. if the fundamentals are there then why not invest in it. i bought DXP Enterprises (DXPE) at a $1.09 in 2001. now look at it. i think there is a lot of good companies on the AMEX and NASDAQ SMall cap markets. if you do your homework right you can make out pretty good. i would read the following books too. 1) the intelligent investor 2) security analysis i hope this helps.